Stock FAQs

why invest in apple stock

by Mrs. Kayli Romaguera Published 3 years ago Updated 2 years ago
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Why Apple stocks are good stock to buy?

Why Apple Stocks are Good Stock to Buy? In our own opinion, Apple, Inc. stock is worth having in your portfolio. If you bought Apple stocks 5 years ago, you’ll know you never made a mistake. Now, find another reason why Apple stock is still worth buying. The things to consider when choosing stocks are as follows; Apple, Inc. Stability

Why now is a good time to buy Apple stock?

Why Apple Is a No-Brainer Stock to Buy Right Now

  • Apple thrives despite challenges. The iPhone maker posted record revenue of $123.9 billion for the quarter that ended on Dec. ...
  • Jumping into the metaverse. ...
  • The services business is going from strength to strength. ...
  • The stock is attractively valued. ...

Why Apple stock is easy money?

This is an important advantage for Apple, because once someone purchases apps on an iPhone, that person is much less likely to switch to an Android-powered phone, since he or she could have to repurchase the apps to continue using them.

Why should Apple buy back its own stock?

  • Buybacks started in late 2012. ...
  • Cash is still king. ...
  • Debt can be good as long as it is not excessive. ...
  • Net cash (Cash minus debt) The high-water mark for Apple’s net cash position was $162.7 billion in its December 2017 quarter. ...

More items...

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Why should I invest in stocks for Apple?

Despite the reliability of its core product categories iPhone, iPad, and Mac, Apple's services segment serves as its catalyst for future growth. For the full fiscal year 2022, analysts are forecasting revenue to climb 8% from FY 2021 levels, to $394.2 billion and earnings per share to increase 10% to $6.15.

Is Apple a good stock to buy now?

Apple Valuation also appears reasonable, relative to historical levels. The stock trades at a forward P/E of roughly 23x currently, down from around 31x in 2021 and 38x in 2020. This could make the stock a reasonable pick in the current market.

Is Apple a good long term investment?

Apple Inc. (NASDAQ:AAPL) stock has seen its growth momentum kneecapped in 2022. On Jan. 3, the company briefly hit a $3 trillion valuation — the first publicly traded company to do so.

Is Apple a good investment for 2022?

For the full fiscal year 2022, analysts are forecasting Apple's top line to improve 8% to $394.2 billion and its earnings per share to increase 10% to $6.15.

What will Apple be worth in 10 years?

The Bottom Line Assuming 18% compound annual growth over the next decade, your $10,298 investment in Apple would be worth $53,898.

Is Apple a buy or a sell?

It is a short term sell and is in the process of breaking lower like all FANG stocks. It is very expensive since the fair market value is much lower. Generally when stocks reach that level they break lower.

Is Apple a good investment for 2021?

The most recent earnings report proved that Apple can still deliver solid growth on top of outstanding results in 2021. Demand remains high for the iPhone, now in its second 5G cycle with the well-received iPhone 13.

What is the prediction for Apple stock?

Stock Price Forecast The 39 analysts offering 12-month price forecasts for Apple Inc have a median target of 190.00, with a high estimate of 219.94 and a low estimate of 145.00. The median estimate represents a +44.45% increase from the last price of 131.53.

What is the future outlook for Apple stock?

Apple (AAPL) is predicted to increase in value over the next several years, according to the latest prediction. Apple's share price is expected to reach $220 by the end of 2022, $250 in 2023, $270 in 2024, $315 in 2025, $370 in 2026, $425 in 2027, $465 in 2028, and $480 in 2029, according to data forecasts.

How often does Apple pay a dividend?

four times a yearHow Often Does Apple Stock Pay a Dividend? Apple stock pays a dividend four times a year. Its quarterly dividend has been payable during February, May, August, and November of each year.

What is the best company to invest in right now?

During uncertain times, investors may want to own companies that offer some sense of certainty in terms of cash flows and company fundamentals....The 10 Best Stocks as of June 2022Equifax (EFX)Anheuser-Busch InBev SA/NV ADR (BUD)Guidewire Software (GWRE)ServiceNow (NOW)Tyler Technologies (TYL)Adobe (ADBE)More items...•

Is Apple stock undervalued?

As of this writing, we think Microsoft's stock is about 23% undervalued, while Apple's stock is 14% overvalued.

NASDAQ: AAPL

Apple is one of the top consumer brands to buy and hold long term

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1. The iPhone 13 is a homerun

Apple ( AAPL -1.78% ) just became the first company to reach a market cap of $3 trillion. The stock recently hit new highs on the back of strong iPhone 13 sales, but there's more to come.

NASDAQ: AAPL

Apple has navigated the supply chain disruptions well. In the fiscal fourth quarter (ended Sept.

2. New products

In December, a Morgan Stanley analyst noted iPhone shipment growth in China was up 46% year over year through November. Moreover, through the holidays, order lead times for the iPhone 13 were trending down to just two days from nearly three weeks after its launch.

3. Growing free cash flow, buybacks, and dividends

Investors are underestimating the strength of the current 5G upgrade cycle. During Verizon 's third-quarter earnings call, CEO Hans Vestberg said customers are adopting 5G much faster than 4G. So far, 25% of the consumer phone base is using 5G-enabled devices, up from 10% within the first year after 4G launched.

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The stock is not cheap, but at a price-to-free cash flow ratio of 31, it's difficult to make the case Apple is overvalued.

NASDAQ: AAPL

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Winners keep on winning

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1. iPhone sales are still going strong

Tech giant Apple ( AAPL -0.94% ) is one of the largest corporations in the world, boasting a monster market cap of $2.7 trillion. It may be difficult to believe that the California-based company still has significant room to grow at these levels.

2. Apple's booming services segment

Apple's signature device, the iPhone, was first released in 2007. And while it has become one of the leading smartphones on the market, new releases of the iPhone still generate quite a lot of buzz -- more than 14 years after it was first introduced. Perhaps more importantly, iPhone models continue to generate robust sales for the tech company.

3. Brand names matter

Over the past five years, Apple's services unit has become increasingly important. The company records revenue associated with subscription-based (and other) services in this segment. It includes Apple TV+ revenue, iCloud-related services, Apple Pay, and many other things.

Don't jump off this ship

Companies that survive the test of time tend to have one thing in common: a competitive advantage. Of course, that can come in many different forms, be it from high switching costs, the network effect, or intangible assets such as patents and copyrights. Apple also has a solid competitive edge, namely its brand name (an intangible asset).

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Every company faces obstacles, and Apple has recently encountered its share of headwinds. Most notably, the company's supply chain issues have hindered its ability to meet the demand for certain products.

When did Apple resume dividends?

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How many iPhone users haven't upgraded?

Apple resumed its dividend in 2012 after a 17-year hiatus, and it has since become a dividend powerhouse. The quarterly payout resumed at a split-adjusted $0.095 and has risen 132% in just nine years.

Does Apple have a capital return policy?

Wedbush analyst Daniel Ives estimates that roughly 40% of iPhone users haven't upgraded their device over the past 3.5 years. This could be the beginning of the long-awaited "supercycle," which could ultimately drive Apple's market cap to $3 trillion over the coming year. Image source: Apple.

Is Apple's wearables business growing?

Another aspect of Apple's capital return policy is its aggressive share repurchase plan. The company has been buying back shares for years. With each quarter that goes by, Apple shareholders own a larger share of the Apple pie. Over the past decade, Apple's share count has declined by nearly 36%.

When did Apple launch the iPhone?

Investors shouldn't underestimate the growing importance of Apple's wearables business. In fiscal 2020 (ended Sept. 26, 2020), the company's wearables, home, and accessories segment grew 25% compared to 2019, generating a record $30 billion and accounting for more than 11% of Apple's total revenue. Not only that, but the segment ended the year on a high note, with each product category -- wearables, home, and accessories -- generating record sales. Apple noted at the time that its "wearables business is now the size of a Fortune 130 company."

Is Apple a growth company?

In 2007, Apple, Inc. ( AAPL) launched the iPhone to tremendous success. The vision of the company’s founder, Steve Jobs, came to fruition, as AAPL was able to capture and entangle a new genre of consumers into its hardware and software empire.

NASDAQ: AAPL

The Bottom Line. Apple has been synonymous with growth and innovation, capturing all of a consumer’s technology dollars with its personal computing (Mac), smartphone (iPhone), and tablet (iPad) products, effectively raising switching costs to an undeniably high level.

Despite the stock's outperformance recently, it still looks like an attractive investment today

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A quality business

Shares of iPhone-maker Apple ( AAPL 1.67% ) have been on a tear recently. The stock has gained 19% over the past 30 days. This obliterates the S&P 500 's 0.3% gain over this same time frame.

A conservative valuation

Investors who take time to look into the fundamentals of Apple's business will quickly realize that there's a lot to like. Circling back to the company's most recent earnings report, Apple demonstrated soaring revenue and earnings per share.

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With financials like this, investors might expect that Apple stock's valuation is very pricey. But even after the shares' recent 19% gain, that's not the case.

What is Apple Inc?

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What is the price target for AAPL in 2021?

Apple Inc. designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players to consumers, small and mid-sized businesses, education, and enterprise and government customers worldwide. The company also sells related software, services, accessories, networking solutions, and third-party digital content and applications. It offers iPhone, a line of smartphones; iPad, a line of multi-pu... Read more

Is Apple stock a buy or sell signal?

On Nov 09, 2021 "The Goldman Sachs Group" gave "$142.00" rating for AAPL. The price target was changed from $150.35 to 0.1% .

Is Apple a buy candidate?

The Apple stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $152.97 and $148.20. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, October 04, 2021, and so far it has risen 15.39%. Further rise is indicated until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely. Some negative signals were issued as well, and these may have some influence on the near short-term development. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

Is Apple Inc. stock A Buy?

Apple holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.

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